07.08.2014 - The Australian dollar continues to cheapen
Statistics on the labor market in Australia has led to a sharp drop in prices of the Australian dollar. Investors have been extremely disappointed with the rising unemployment rate in the country by 0.4% to 6.4%, the highest unemployment rate since 2002. Number of employed in country has fallen by 0.3 thousand, while was expected the increase by 13.5 thousand. It should be noted that further price movement will depend on the the statement of the Reserve Bank of Australia, which in previous statements indicated the overvaluation of the national currency and a significant potential for drop in prices of currencies.
Among the negative factors for the Australian dollar should be allocated to decline in investment in the mining industry of the country and falling prices for iron ore, copper and gold. We maintain a medium-term negative outlook for the Australian dollar with the reduction target at 0.89.